Implementation of New Ontario Electricity Transmission Rates Delayed Due to COVID-19 Pandemic
The Ontario Energy Board (OEB) issued a decision on July 30, 2020 approving 2020 Uniform Transmission Rates (UTRs) for the six licensed electricity transmitters in Ontario that currently recover their revenues through the UTRs. As noted in the decision, the OEB approves revenue requirements and charge determinants for the individual transmitters in separate proceedings and uses these to calculate the UTRs.
The OEB decided that, in order to minimize the impact on electricity customers and provide rate stability during the COVID-19 pandemic, the 2020 UTRs approved in the July 30th decision will not be implemented at this time. Instead, the 2020 UTRs put in place on an interim basis on January 1, 2020, will continue for the remainder of 2020.
The July 30th decision established Foregone Transmission Revenue Deferral Accounts for three of the six transmitters and continued Foregone Transmission Revenue Deferral Accounts that had been established for the other three transmitters. Each transmitter is to use the Foregone Transmission Revenue Deferral Account to record the difference between revenue determined under the interim 2020 UTRs and the revenues that would have been received under the approved 2020 UTRs.
The OEB did not establish a collection period for the foregone revenue of the transmitters, but indicated that a future decision will set the 2021 UTRs and determine the period over which the foregone revenue will be collected.